In February, US factory orders rose by 1.3% M/M, a slightly softer rebound than expected (1.5% M/M). The January outcome was marginally downwardly revised from -1.0% M/M to -1.1% M/M. The breakdown shows that strength was mainly based in durable goods orders (2.4% M/M), while non-durables rose by a more moderate 0.4% M/M. This time, strength was not only based in transportation, as factory orders excluding transportation rose by 0.9% M/M. Inventories continued to rise in February, by 0.4% M/M. The inventory/shipments ratio stayed unchanged for a third consecutive month, at 1.33. Shipments of nondefence capital goods excluding aircraft rebounded by 1.4% M/M, only reversing half of the 2.8% M/M drop in January. The report is slightly weaker than expected as the rebound is somewhat milder than we had expected after the disappointing January outcome. It will be interesting to see whether the improvement continues in the coming months.